Correlation Between Barclays Capital and ASHX
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and ASHX at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Barclays Capital and ASHX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and ASHX, you can compare the effects of market volatilities on Barclays Capital and ASHX and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Barclays Capital with a short position of ASHX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and ASHX.
Diversification Opportunities for Barclays Capital and ASHX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and ASHX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and ASHX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASHX and Barclays Capital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Barclays Capital are associated (or correlated) with ASHX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASHX has no effect on the direction of Barclays Capital i.e., Barclays Capital and ASHX go up and down completely randomly.
Pair Corralation between Barclays Capital and ASHX
If you would invest (100.00) in ASHX on December 27, 2024 and sell it today you would earn a total of 100.00 from holding ASHX or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Barclays Capital vs. ASHX
Performance |
Timeline |
Barclays Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ASHX |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Barclays Capital and ASHX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barclays Capital and ASHX
The main advantage of trading using opposite Barclays Capital and ASHX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, ASHX can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ASHX will offset losses from the drop in ASHX's long position.Barclays Capital vs. Virax Biolabs Group | Barclays Capital vs. Revelation Biosciences | Barclays Capital vs. Kiora Pharmaceuticals | Barclays Capital vs. Quoin Pharmaceuticals Ltd |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |